Guidance

[Withdrawn] 087/22 To provide clarity to Grant Recipients on Underperformance

Updated 16 August 2024

The information in this Action Note is out of date and should not be used. This Action Note was withdrawn on 25 September 2023 and is published here for information only.

Date Issued

10/08/2022

Review Date

31/12/2022

1. Who should read

All ESF Direct Bid Beneficiary Organisations, the Greater London Authority and the ESF Managing Authority

2. Purpose

This Action Note is to inform Direct Bid Grant Recipients (GRs) of the actions that will be undertaken by the Managing Authority (MA) to continue to address underperformance and to enable commitment of remaining project funds managed on behalf of the European Commission.

3. Background

As the 2014-2020 ESF Programme is nearing its end, a key priority for the MA is to focus on projects to ensure they are spending their grant in time and in line with their financial and participant profiles.

Due to the timescales involved, existing ESF Direct Bid projects that are not currently delivering to the level detailed within their Funding Agreement, or within the established 15% variance expenditure and or total participants, will be contacted by their Contract Manager (CM) and asked to submit a Project Change Request (PCR).

CMs will contact the GRs by adopting a tranche-based approach with tranche timings being determined by project end dates. Therefore, those projects with earlier end dates will be in the earlier tranches and contacted in the first instance.

.

4. Action

Projects will be contacted ahead of their tranche by their CM who will confirm the dates between which the GR must submit their PCR.

Therefore, GRs do not need to contact the MA to request their tranche dates.

In order to be in a position to submit their PCR within the relevant tranche timescales, GRs are advised to be preparing their robust information in advance of the MA requesting the PCR.

The tranches will be defined as follows:

• Tranche 1 – PCR will need to be submitted between 01/09/2022 and 09/09/2022.

• Tranche 2 – PCR will need to be submitted between 03/10/2022 and 11/10/2022

• Tranche 3 – PCR will need to be submitted between 01/11/2022 and 09/11/2022

• Tranche 4 – PCR will need to be submitted between 01/12/2022 and 09/12/2022

Any PCRs that are received early will not be considered until the relevant tranche dates for that project and will be rejected. Once the relevant tranche for that project is being actioned, the CM will send the Underperformance email Template to the GR to request the PCR is re-submitted.

Any PCRs that are received later than the project’s relevant tranche end date will not be considered and underperformance will continue through to potential early project closure and / or claw back.

Where a project fails to submit a PCR, they need to understand that this may be considered a breach of their Funding Agreement.

Following contact from the CM, the GR will need to submit a robust PCR with very realistic, achievable profiles that the project is confident it can deliver and understand that future underperformance could result in early project closure and / or claw back.

As part of the PCR, the projects will need to fully explain:

• what challenges the project has faced

• what mitigation/measures the project put in place and whether this was successful

• what plans the project has in place for the future to improve performance to project end date

• any other detail the project feels relevant to the PCR

• in addition, where appropriate, projects will need to provide a robust statement to explain the impact of Covid-19, measures put in place and whether these measures were successful

It is essential that projects submit realistic, achievable PCRs as the Appraisal Team will consider approval based only on the initial PCR received.

Where the MA considers the justification supporting the PCR is robust and reasonable, given the circumstances of COVID (if appropriate) and based on realistic proposed profiles through to the end of the project, the MA will approve the PCR. The subsequent re-profiled performance will then be closely monitored to ensure delivery against the Funding Agreement Variation.

Should project performance start to exceed the 15% tolerance already established in the Programme, formal underperformance will commence.

Where the MA considers the justification supporting the PCR is not robust or not reasonable, taking into account the project circumstances, the PCR will not be approved by the MA. Based on the original profiles prior to the rejected PCR, the project will move into formal underperformance action, with the possibility of early project closure and or claw back.

GRs must notify the CM via email once the PCR has been submitted on ECLAIMS.

Please note, as stated above, PCRs that are submitted outside the relevant tranche dates or without agreement with the CM will be rejected.

5. Contact

If you have any queries about this Action Note please email esf.2014-2020@dwp.gov.uk.